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Second hand gold

Second hand gold can be a great way for investors to buy gold closer to spot price, reducing their spread and increasing their profits. When someone chooses to buy second hand gold there is a surprising variety of items they can consider. A pure investor may want to consider second hand gold bars or coins, gaining all the investment benefits of a new item, but at a lower price. Other may look at second hand gold jewellery, or other scrap items that can then be resold.

gold scrap jewellery Anything made from, or containing, gold will have a value equal to the current market value of the gold. Broken gold jewellery may, for example, be worthless as a possession but the gold it contains still has an intrinsic value. Collecting these and finding a buyer could prove fairly time consuming however, and usually has very tight margins, requiring large volumes to be viable.

For most people then, the best second hand gold to buy is a bar or coin.

Secondary gold market

The 'gold market' generally refers to the international commodities trading which determines the gold market spot price. This international gold price affects the price of all items made from or containing gold.

Second hand or pre-owned gold is therefore traded on what is referred to as the 'secondary gold market' . The price of gold on the secondary market is still determined by the gold spot price, but it is also influenced by many other factors. Supply and demand, plus the desirability of the item, can add to the gold value, or it can take away.

Anyone buying an item on the secondary gold market would generally expect to pay a lower price than if the item was new, if the item is purely for investment purposes, such as a gold bar. Buying coins on the secondary gold market can be a little more uncertain however. If it's a particularly desirable piece, and still in good condition then you could get a higher price, even if the underlying gold price remains the same.

Second hand gold bars

Second hand gold bars can be one of the most straightforward products to buy pre-owned. From the perspective of an investor in physical gold, the shape and form of their gold has little consequence - an ounce of gold being the same to all. Despite this, brand new gold bars, bought through a dealer direct from refineries are usually slightly more expensive than second hand bars.

Many bullion dealers such as ourselves offer pre-owned gold bullion bars at a discounted premium compared to brand new bullion, as an incentive for customers who can sometimes be wary of buying second hand gold. These items are as valuable as the new version, still contain the same amount of gold, and will be worth the same upon resale.

Many investors simply buy their bar, then store it away safely before selling in the future. This often means the condition of a second hand gold bar is still excellent, and can save you more money, reducing your spread and increasing your profitability. We stock second hand gold bars in a variety of sizes, all from LBMA-approved refiners, fully tested for authenticity, and perfect for investment.

At BullionByPost we are strict with our inspection requirements of all gold and silver coins and bars, ensuring all of our products are of the correct purity and weight, but also of acceptable condition.

Second hand gold coins

With thousands minted every year for investment purposes, it should be no surprise that there is a huge market for second hand gold coins. Like the bars above, there is very little difference between new or pre-owned when it comes to gold coins.

A collector may wish to have a new current-year coin direct from the mint, but for investors second hand gold coins will usually offer the closest price to spot, making them the first choice for many. Condition can be a bit more variable with second hand gold coins, where proud owners may have handled the coin, or displayed it on a shelf. In the case of older coins like the Sovereign they may even have been circulating coins.

BullionByPost take great pride in our second hand gold coins, testing them for authenticity, and condition. We have a large selection of second hand coins 'Best Value' ranges, offering some of the lowest ounce for ounce gold prices, perfect for investors.

Scrap gold

Even though savings can be made when purchasing through the secondary gold market, the major value of all these items is essentially determined by the market price of gold.

Bullion dealers will generally buy back gold on the basis of the gold weight and the current market price. Rarely is the item's condition of any consequence. Sellers of scrap gold, jewellery, coins and bars will generally receive the market value of their pure gold weight, minus a small dealer fee.

At BullionByPost we offer 96% buy-back rate for gold coins and bars, and offer similarly competitive rates for scrap gold - whether coins, bars, or jewellery. Visit our Scrap Gold page for price estimates based on the weight and carat of your gold, or call our helpful support team on 0121 634 8060.